here hey, we have a special coming up next week. we're going to having this going forward and how we're going to rectify the situation. this is more or less to set the stage >> i appreciate the question but i in terms of context here it's not because we've gone hog-wild and spent money on a later agenda. this is a long known infrastructure that the officials in this mayor's office have inclined in the past and it's grown over time and i think

it's largely outside i can't speak it's outside of the control of this department and they've tried to deal with it for years but now we're going to try to fix this. i remember last year in the twilight zone in his previous position they did the responsible thing that were it's high time we address this in a long he term kind of way >> i want to chime in about the difficulty about the choices we have. we make choices amendment and i think some of the choices we've made are good.

we had a meeting earlier how to make sure we had enough funding for hiv services but there's also services that we value as well and we want to be able to continue and we chose to make sure those r were intact. so, yes it's been difficult but we also have like significant changes in terms of funding streams in terms of the federal and state cuts. we have to lead to the needle to find out would level of services we want to have and how we're going to back load that. but i don't think that it's just we're been kicking the can down

the road but we're trying e trying trying to be compassionate >> maybe someone can explain to me that we knew that general hospital was going to need inference and we knew what the bond could and couldn't pay for and i'm assuming there wasn't a request for it how does this relate to the furniture? >> on the furniture picture and equipment that has been put into the budget. we've known about it and actually, the two year budget passed last year by the board there's a $40 million that's the

first down payment toward the anticipated value of 2015 also reflected on the sheet those have been planned. so i don't want to give the expression at all. as part of the 5 year planning discussion when you add up all the plans and general fund impacts from the department of public health that the total value is high and so we view our responsibility to be able to present you as policymakers with options on how to bring that value down. so the items on that planning

document i don't want to give the expression there are things we didn't anticipate they were things we did anticipate that a challenge really at the health department based on what they mean for the bottom line what are the adjustments we need to make in other words to have the city's budget balanced >> colleagues any other questions at this time? i'd like to open it up to public comment. seeing none public comment is closed. colleagues if we could continue items 2 and 3 to the call of the chair. okay. so moved. mr. clerk call item number 4

>> federal sequestration will effect the city's budget and key responsibilities. >> thank you very much. colleagues i asked for this hearing a number of weeks ago given the federal government's inability to solve some of their financial issues up in congress and the sequestration. obviously this has been effecting us locally and how much of an effect. i want to thank ms. howard from the budget office and also talk about some of the things we don't know how it's going to effect us. for instance, some of the things on the chopping block that provided a lot of activity to our city. it's important to have a grip on

what's going on >> thank you supervisor. kate howard. happy to talk you throw thank you high level known that impacts of federal sequestration on the city and counties. and in addition, some of the other local agencies and some potential impacts to the residents of the cities and coincidences. i thought i'd take thank you high-level of what has happened in the sequesterer and share you to what degree their uncertain and happy to answer any questions. i've handed out a copy of this presentation as well as a high level summary of the high-level impacts thi

impacts. the yellow or orange dots are sharing with you have how certain we are of those cuts. you'll remember in not that i'm aware of both the house and the senate voted across the board for the president to act around federal reduction. that threat was not strong enough to get people to take action so on january 2nd the congress detailed implementation of this sequestration puc. congress was still not able to come up with the decision so the sequesterer cuts have been implemented. that means the reduction was 8.2 percent and the implementation

going forward would be 5 percent. we don't know until congress passes a budget. or agencies tell the city what they're doing. the impacts that we are tracking are outlined here. you'll see in the current year for the two first columns reflect the impacts to the city. the majority of reductions related to the federal sequesterer if the first year of this year are potentially to muni related to the federal subway and to the public health.

on the non-agency side you'll see the significant housing and homelessness and this is entirely the housing authority. >> and that housing authority is duplicate on both years; correct? >> that's correct. we'll go through those relatively quickly. so you can see the first slide gives a high-level sense of what's going on with children's youth and aging programs. modest reductions to city programs the big youth program is related to childcare like head start as well as idea.

at this school district. in addition, nutritious programs of the school district are potentially impacted. for the aging this includes funds for case management for older adults and adults with disabilities. on the housing and homeless front we a strong indication of those kits. no impacts inform to the current year by to the housing authority almost $13 million of reductions. that's divided into two categories it's about $4 million to public housing funds which effects the housing authorities

current operating fund. and an additional $8 million to this program. in addition, in fourteen, fourteen the major impacts are related to homelessness prevention as well as cd b g grants and programs. on the health side all of the public health cuts our best estimates based on information we have we haven't seen any direct information on the timing or the final reduction values. those are significant impacts about $7 million in the first year and 9 and a half in the second year.

including the rhine white, hiv reductions as well as the cdc reductions you've heard about earlier as well as direct nutrition program that supports low income moms. and on economical and development a similar situation our best estimates based on the way those formulas are described this would be a $335,000 reduction to the city. this includes those public safety grants that are provided by the department of the justice that includes domestic violence and persecution related fund.

those funds typically pay for equipment for the police department, fire department, sheriff's department and other. on energy and transportation the big impact is potentially on central subway >> thank you i'm sorry i know this is about the sequesterer and the impacts because - so under back to public safety under the federal d o g grants that was already award and it was anticipated. it's not potentially new grant revenue for the city? >> that's right in the current year those are grants that have been awarded.

each of those grants are received by a number of different agencies many of them are with the city attorney's office. this next slide highlights you the potential impacts on non-city agencies that national park serves as well as the two military i base clean up projects. so the current program we're tracking is to the golden gate

national recreation area and an additional $5 million that would be reimbursed out of the clean up funds for treasure island. those again are places where we have a strong indication but no formal notification. and ms. hourld is this just a general budget cut or are there specifics? >> i don't have that supervisor but i do have it's a reduction to things like facility maintenance or trash pickup or holding a number of positions vacant that would otherwise be filled. other notable impacts there are

also reduction to both faa and tsa which are libel to result in longer delays when people are trying to go through security at the arrangement. and as you mentioned there's a potential impact as you may have heard the navy is talking about eliminating funding for fleet program for the blue angels like flight team for both the navy and air force. and it's estimated to have about 64 million dollars impact on our country and it's important to be tracking and advocating about. in closings the ultimate impacts are unclear you can see we have

to red dots which means we've gotten no formal notification from the 0 itself that those are happening on a timeline. there's still a considerable amount of uncertainty. so the impacts are still significant so for example, potentially this year up to 8 and a half million dollars of general impacts and next year an estimated $13 million in estimated general impacts. so when he think about the other fell rescues regarding hiv and aids funding. there's a trade-off that you and

the mayor will have to look at. the reason there's some upper certain here the city received a significant amount of direct federal money but we receive an additional amount of grants. so you can imagine we're at the end of that game of telephone and we're not getting a direct signal yet. so if the state makes their determination my expectation that these numbers will continue to change. so that's basically, what i just said. and so question many howard in terms of timing. we won't know until the federal

passes its budget are we going to get signals? are those dots going to turn red? >> i hope we have important clarity in the next several months particularly about the clarity so this board can continue to figure out what are priority and what we should continue to fund. you'll remember that our 5 year plan does not have a federal reserve. this kind of information particularly if it is particularly if there is significant uncertainty it that might be a pursuant step to

take. but that will be a communication that needs to continue >> so if we pass our budget before they pass theirs theirs going to a fine line. any questions? >> thank you, ms. howard i appreciate it. >> so colleagues again call for this right now to get a preview i would like to continue to to be a call of chair. so can i take a motion? >> first any members of the public like to say nothing? seeing no one. closed. >> mr. clerk can i please call the next item 5.

resolution daupd the city's 5 years plan 2013 through 2014 and section 1129 >> thank you many howard or for year financial plan? >> hello supervisors. so when i presented to you last week, i give you a high-level overview of the financial plan. i didn't plan on an additional plan today but i'm happy to answer any questions.

i believe it's on the agenda as an action item >> thank you. thank you cleegz i wanted to bring many howard up in case we had any questions. opening it to up public comment. seeing none closed this does need to be approved by may. >> okay. please call item 6. >> privity that i have appropriating funds this appropriation is subject to two-thirds of the permanent vote of all members of supervisors. >> okay. so this is a special

from the public defender's office but we don't have a public defender here. mr. clerk let's take a 5 minute recess. let's do this. can we continue - why don't we go to item 7. let's take care of that. can i continue item 6 to the tail end of this committee meeting? no motion needed. okay >> you're asking for a motion for the item. >> so, please call item 7. item 7 the legal manipulation of the long island rate on the san francisco financial to explore

options and other of him options that the city is engaged in that are excessive. >> thank you chair farrell. this item we'd to move to next wednesday and if we could have it at 1 o'clock that would be great. the public side agreed that would be best and we could start fresh then >> we'll entertain a motion to continue this one week first, i'd like to open it up to public comment. any members of the audience wish to comment? >> i've lived in san francisco for 61 years. first, i'd like to thank this

committee there were some very important items. items number 6 and item 3 which i just missed so i'll look at it on replay. i think this committee is doing very good work and i hope it keeps it up let's face it the department of public health wastes a lot of money and it effects the poor. >> thank you. colleagues you can't can we continue this one week? >> so moved. okay. we have item number 6 before his the supplemental

>> thank you for your patience here because of the way the hospital in was post we can't have 6 members of the board here at the same time but this is a supplemental that i was proud to produce. i want to thank the supervisors for their co-sponsorship. i'll turn the bulk to the chief assistant public defender. but we're talking about

expenditures that are needed. those are monies that are required for us to live up to our googsz and we're not talking about new positions being add and i was pleas to see the recommendations. where their recommending the bulk of their requests. with that i would ask mr. gonzales >> thank you. i know it's been a long meeting. i've caught part of it and reminded one of the reasons i didn't seek re-election but i commend you for our service. i thought there is one issue

that deals with temporary slalz and i thought i'd like to break it down. we're in agreement with the recommendations but some of the things in the report i'm not happy about. the savings educate is basically two categories one is salary attritions which is typically the savings the department will have when you budgeted for an employee to be there for the entire year and it turns out i don't have to pay somebody for the whole year because of part time or leave or furlough or the employee leaves the office before y